BlackRock to Acquire Private Credit Manager HPS in a $12 Billion Deal

BlackRock has reached an agreement to acquire HPS Investment Partners, a private credit firm, in a deal valued at up to $12 billion. This move marks another significant step in the ongoing wave of consolidation within the asset management industry.

The Financial Times reports that the broad terms of the acquisition have been finalized, with a formal announcement expected shortly after the US Thanksgiving holiday.

HPS had initially planned to go public, with reports in September indicating the firm was preparing for an IPO that would have valued it at $10 billion.

This acquisition aligns with BlackRock’s strategy to grow its alternatives business. Just last month, the firm completed its $12.5 billion acquisition of Global Infrastructure Partners, the largest asset management merger of the decade.

2024 has already been a standout year for global asset manager consolidation. According to PitchBook data, mergers and acquisitions in the sector have reached $27.3 billion across 112 deals as of October 8. With this latest transaction, 2024 is set to achieve a record in total deal value.

The surge in activity reflects a broader trend of asset managers diversifying into multi-strategy platforms to attract a wider investor base.

BlackRock’s deal follows Ares Management’s recent $3.7 billion acquisition of GLP Capital Partners’ international real estate business, which doubled Ares’ real estate assets under management to $96 billion.